The Serious Fraud Office (SFO) has launched a criminal investigation into failed Icelandic bank Kaupthing.
The Office will investigate what happened in the run up to the bank's collapse in October 2008, including how some individuals were able to withdraw large funds just days before it fell.
Another focus will be why some of Kaupthing's clients were allowed large loans backed with minimal collateral and deferred interest payments, including property tycoon Robert Tchenguiz who borrowed £1.25bn to buy stakes in Sainsbury and pubs giant Mitchells & Butlers.
The SFO is particularly interested in the bank's efforts to attract UK investors to the purportedly ‘high yield' deposit account, Kaupthing Edge, and whether these included criminal misrepresentations or false representations.
An SFO spokesman says: "This is a complex investigation which crosses numerous
jurisdictions. We have been working closely with the Icelandic Special Prosecutor's Office to ensure that comprehensive and robust investigations are conducted both in Iceland and the United Kingdom and to ensure that there is no duplication of effort."
The fraud office will invite many of the 30,000 parties who lost a collective £2.4bn over the Kaupthing debacle to give evidence in the case.
Earlier this year, a team journeyed to ReykjavÌk to gather evidence on the link between Iceland's banks and key players in British retail and property companies.
One discovery found a link between Iceland's banks and Sports Direct founder Mike Ashley.
Ashley was a depositor in some of Iceland's banks. But the SFO is examining whether he may also have taken out loans.
They also want to know whether Chris Ronnie, former chief executive of rival JJB Sports, may have indirectly received some of the Ashley loan.
Kaupthing financed Sports Direct's acquisition of stakes in Blacks Leisure and JD Sports.
The bank also advised Ashley on his acquisition of Newcastle United.
London fraud solicitor Burton Copeland is thought to have already been appointed by members of the former Kaupthing board.
Anyone wishing to share information with the Serious Fraud Office can follow secure link https://www.surveymonkey.com/s/9LR8TWX
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension